Dutch startup Flow Your Money is now a licensed Account Information and Payment Initiation Service Provider. Flow received their PSD2 license from the Dutch Central Bank on July 13, 2020. It makes Flow one of the first fintechs in the Netherlands that can both make payments and view bank transactions on behalf of the customer.
No more nasty VAT surprises, no shortage for groceries and no longer forgetting to put money in your savings account. Flow manages all your money-flows the way you want on autopilot. A “pre-accounting method” that recognizes invoices, automatically saves or deposits money into the correct account, and sets aside VAT. Consumers and companies will soon be able to use the handy app to manage cash flows.
Expensive PSD2 license
Last year, the fast-growing startup raised €600,000 in investments, and 7 months later, they have already acquired their PSD2 license. Alongside the various financial regulations, Flow’s dedication to privacy and information security allowed them to obtain ISO27001 certification and PSD2 licensing in record time. The strict supervision of the Dutch Central Bank further guarantees the privacy and security of Flow’s users.
Until now, licenses issued by DNB were often only for the viewing of bank data (AISP). Flow goes a step further and can also initiate payments (PISP). “This allows us to deliver a more comprehensive product and actively help people with active budgeting. Other apps look in the rearview mirror and only show what you’ve spent, while your bank account shows a different balance. With Flow, you can look ahead and determine what you can spend on groceries or eating out next month. This way you can immediately see what you have to spend on your bank account, ”says founder Daan van Klinken (32).
Solution for consumers and companies
The fintech has developed an app to get a better grip on your finances by automatically dividing your money between savings goals and budgets. Flow expects this is the next important step for consumers and freelancers in managing finances. Making digital pots is already possible at some banks, but automating or setting smart rules is unique and ensures a much better customer experience. For example, a freelancer can set the income tax to be automatically set aside after each paid invoice. The app calculates how high this amount should be. Thanks to the payment initiation function, this amount can be automatically transferred to another bank account, which means that jars do not just remain virtual.
Flow started during a hackathon by founders Daan van Klinken and Niels Mulder. Daan van Klinken: “The idea for Flow originated a few years ago on an alpaca farm in Drenthe together with several programmers. We posted the concept on Twitter, and many enthusiastic responses soon followed. We could not have imagined that we are here now and have obtained the license.” From the beginning there are European ambitions. Flow is already talking to banks from all over Europe who are interested in their technology. Currently, Flow works with the European bank bunq while other banks are being added. The app will soon after be available for all of Europe.
Investors include Noordelijke Ontwikkelingsmaatschappij (NOM), Runtime Ventures, and Enigma Consulting. Flow expects to collect another investment at the end of this year. The newly obtained PSD2 license is an important part of this. Enigma Consulting has assisted Flow with the permit application. Director Paul Jans: “We are very proud that we have achieved this with Flow. The primary reason for PSD2 is to stimulate innovation, and Flow fits perfectly within that vision.” Flow advisor Robert Kraal, known from international payment platform Adyen, who brings a lot of relevant experience in this field.
Flow is currently working hard on the latest developments for the app. The app will be available from September 1st and you can already sign up for the waiting list on the Flow website.